Seoul Stock Market Dips as Investors Eye US Federal Committee Meeting

On Tuesday, South Korean stocks opened on a weaker note, with investors focusing on the upcoming US Federal Open Market Committee (FOMC) meeting slated for later this week. A sense of caution permeated the trading floor as market participants sought cues on future interest rate decisions.

The benchmark Korea Composite Stock Price Index (KOSPI) faced a downturn, shedding 27.32 points, a decline of 1.02 percent, to hit 2,658.52 within the first quarter-hour of trading. This dip in the KOSPI came despite a positive closure in the US stock market, where gains were predominantly seen in the technology sector. The Dow Jones Industrial Average inched up by 0.2 percent, while the Nasdaq Composite saw a notable increase of 0.82 percent.

As the FOMC prepares to embark on its two-day interest rate discussion on Tuesday, investors around the globe are keeping a watchful eye on any indications that might affect global financial dynamics.

In Seoul, tech behemoth Samsung Electronics saw its shares fall by 1.37 percent, while SK hynix, another leading chipmaker, experienced a sharper decline of 2.5 percent. The automotive sector also faced headwinds, with Hyundai Motor's shares decreasing by 0.62 percent, and its counterpart Kia undergoing an even larger drop of 4.61 percent. Hyundai Mobis, a key auto parts manufacturer, also recorded a loss, with shares dipping by 1.49 percent.

The South Korean won was not immune to the bearish sentiment, depreciating against the US dollar. The local currency stood at 1,337.4 won to the dollar, weakening by 3.7 won from the previous trading session's close.

Seoul, Stocks, FOMC